Monitoring corrective action

The table illustrates the various steps that are taken by Electrolux when cases of non-compliance are found in our supply chain. Findings are graded in order of severity and range from Acceptable Findings to Zero Tolerance issues.

Our response to these findings and subsequent monitoring of remediation vary according to non-compliance severity.

Monitoring corrective action
ACCEPTABLE FINDINGS MINOR NON-COMPLIANCE MAJOR NON-COMPLIANCE ZERO-TOLERANCE ISSUES
Improper documentation on labor contracts, age; training on first aid, fire, handling and storage of chemicals. Working hours, overtime compensation; safe working environment (use of chemicals, safety equipment, fire exits); administrative records; environmental protection (waste treatment; certificates; non-compliant emissions to water and ground) Under-age labor; bribery of auditors; forced or bonded labour
Corrective action plan is provided for suppliers with findings. Corrective action plan is provided at audit conclusion. The factory manager must reply within 7 days on the action they intend to take for each violation. Corrective action plan provided at audit conclusion. The factory manager must reply within 7 days on the action they intend to take for each violation. Corrective action plan provided at audit conclusion. The factory manager must reply within 7 days on the action they intend to take for each violation.
In cases of under-age labor, the child stays at factory with light work until final corrective actions are arranged by the supplier (within 7 days). Progress of each child (ie:compensation for returning to school, family situation) is followed up with the supplier.
Re-audit annually or bi-annually (depending on risk assessment of that supplier) Follow up within nine months, either by phone/mail or a visit by purchasing/quality department. Re-audit after three months. Responsible buyer is informed with recommendations of appropriate action. The purchasing department has responsibility to decide how to proceed.
Re-audit annually or bi-annually once passing the audit (depending on risk evaluation of that supplier) If non-conformances are found, we initiate actions such as training, hands-on support, or dialogue between the purchasing officer and supplier. A notification letter signed by the purchasing dept, states in clear language that supplier must take immediate action.
If the supplier shows no willingness to improve, termination of contract will be considered. If no action is taken, the decision on how to proceed is made on an individual basis (based on purchasing criteria such as the role of the suppliers).

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